E-Wave for the S&P 500 Index

[gdl]

As i insisted 14 months ago this is not transitory but a 40 year cycle. Not only will we not see further tempering of inflation we are entering the next round of spike moves. Like the pandemic it wasn't a matter of technical data or any system but common sense. The proof has already been shown in just one days data point. Friday exploded on jobs, 11 million jobs for hire, and manufacturing that went from contraction to expansion in a big way from December to January.

We have never tamed inflation and wage growth in a tight labor market. NEVER! this is economics 101 or perhaps i am missing something. I deal in logic and common sense and when the market ignores both it does so for a short period before it realizes the mistake. The other huge problem is China. The data from them last month was as explosive as ours this month. Their economy is now opened up and they are on a spending spree.

If the above statements are incorrect please refer me to any article that contradicts it. If the stock market and our economy will ignore these factors i presented then i don't understand the basics of how economies work. As for earnings the premise to hold up this market at these levels is that in THREE quarters from now we will see double digit earnings. Nine Months? Really? because if you drop that assumption out we are extremely overvalued here.

I am just presenting a layman's interpretation of why this market is ripe for a crash. If the CPI/PPI for January is also a shocker it is Game Over!

I believe we hit the highs on 2/2/2023. Should know soon if that hold true.